CFI ACTION-OLYMPIC COMPLAINT
Ryanair Holdings PLC
22 November 2007
RYANAIR SUES EUROPEAN COMMISSION
FOR ITS FAILURE TO INVESTIGATE ILLEGAL STATE AID
TO OLYMPIC AIRLINES
Ryanair, Europe's favourite low fares airline, today (Thursday, 22nd November
2007) lodged a case in the European Court of First Instance against the European
Commission's failure to act on Ryanair's complaint about a further approximately
€500 million worth of illegal State aid to Olympic Airlines, granted through
bogus 'arbitration' proceedings involving certain 'services' allegedly provided
by Olympic to the Greek Government. The Greek Government was found guilty of
providing hundreds of millions to Olympic to bail it out in the past and this is
the latest attempt to prop up this failed national carrier. Ryanair has called
on the Commission to investigate this obvious abuse of EU competition rules
already in 2006, but the Commission has so far failed to do so.
Announcing the launch of these proceedings Michael O'Leary, Ryanair's CEO, said:
'This is just another example of the Commission's twin track approach to
State aid in the air transport sector. On one hand they continue to
waste time and taxpayers money investigating baseless complaints against
standard free market deals at regional and secondary airports, for
example Tampere and Alghero. These complaints were filed by inefficient
high fare flag carrier airlines operating at expensive hub airports, who
would never fly to smaller airports and are simply trying to prevent
competition and consumer choice.
'On the other hand, the Commission repeatedly ignores blatant State aid
to Air France, Lufthansa, Olympic, Alitalia and others. The Greek
Government's most recent tranche of State aid to Olympic involves
approximately €500 million, mostly for 'unpaid services' allegedly
provided by Olympic to the Government. However, the Commission has
refused to do anything about this since 2006, which left us with no
alternative but to challenge the Commission's inaction in the European
courts.
'It appears that the Commission applies two approaches to enforcing the
State aid rules: one of ignoring or signing off on continuing unlawful
State aid for the inefficient high fare flag carrier airlines, and the
other of pursuing baseless complaints by flag carriers against low fares
airlines operating out of regional and secondary airports. This twin
track approach must end and we are therefore calling on the Commission
to start promoting competition, end unlawful State aid, and stop
protecting flag carrier airlines'.
Ends. Thursday, 22nd November 2007
For reference: Peter Sherrard - Ryanair Pauline McAlester - Murray Consultants
Tel: +353-1-8121228 Tel: +353-1-4980300
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